Overview
- Multiple outlets report Microsoft will cut fewer than 2.5% of its roughly 220,000 employees, a reduction that still equals thousands of roles.
- The layoffs are said to focus on sales teams, consulting staff and the Xbox gaming division, with Xbox leadership having called for a business “reset.”
- Notifications to affected employees are expected in early July, with several reports naming the week of July 6–10 for initial notices.
- Some employees are reportedly being offered alternative roles inside the company instead of separation, while Microsoft has not publicly confirmed the reports.
- The move follows an April voluntary retirement buyout that eased the need for larger cuts and comes as Microsoft faces investor pressure while increasing capital spending on AI and cloud infrastructure.